The further removed heirs are from those who created the wealth, the less likely those heirs are to understand the work that went into it and the more likely it is that having wealth will seem like a natural occurrence to them.

This often leads to these later generations spending more of the wealth than they should and not leaving enough for it to continue passing down through the family.

There are ways to help protect against this.

Those who create the wealth can discuss the issue with their estate planning attorneys and devise ways to make it more difficult for later generations to waste what they inherit. Another good idea is to make sure that subsequent generations receive solid financial education and advice.

01/11/2017

MarketWatch recently discussed in "How to prepare for the death of your spouse," that when you know ahead of time that your ill or elderly spouse is going to pass away, there are some preparations that you can make.

Among the preparations that can make things easier are:

Gather up all important legal and financial documents. This includes Social Security information, marriage licenses, retirement account information and anything similar. If your spouse has an estate plan, then also locate it. The important thing is to make sure you know where everything is and can access it quickly when needed.

If possible and if you have not previously done so, talk to your spouse about his or her wishes and instructions for what should be done after death. Knowing what your spouse's burial wishes are, for example, means that you do not have to come up with a plan for them on your own.

If your spouse has an estate attorney, talk to the attorney. Let the attorney know the situation so he or she can prepare and assist you in making the appropriate legal preparations.

The 11-year-old Debbs of Florida was an active youth who had aspirations of becoming a quarterback in the NFL. He knew that he had what was believed to be an allergy to peanuts and tree nuts and avoided them. He had a piece of coffee cake at a family gathering at Thanksgiving but it contained walnuts. Despite emergency treatment with EpiPen, he passed away.

Families starting foundations in the wake of a lost loved one's tragic death is becoming a minor trend. By setting up a foundation instead of just giving to a charity that does similar work, families are more capable of controlling the loved one's legacy and directing how funds should be spent.

However, foundations are also more difficult to manage and require families to invest more time in the project. Some get around this problem by hiring professional foundation management companies.

Contact a wills and trusts attorney, if you would like to explore options to create a legacy.

A recent example of something that cannot be done happened during a performance at the Metropolitan Opera in New York City.

During an intermission a man stood up and spread his friend's ashes in the orchestra pit. The musicians were not in the pit at the time. However, the ashes caused enough alarm that the performance was cancelled as was another performance scheduled for later in the day.

This is obviously an extreme example. Scattering human ashes inside a public building is never a good idea. Other cases are not as obvious.

For example, if the ashes had been scattered on the field at Yankee Stadium, it might not have caused as much alarm. However, that does not mean it is legal to spread ashes on baseball fields. It depends on state laws and the field owner's policies.

An estate planning attorney can guide you in creating an estate plan that meets your wishes but doesn’t lead your loved ones to an illegal act.

10/18/2016

Setting up and maintaining a memorial fund to support charity can have its challenges but the New York Times recently published an article with tips on making it successful in "Honoring a Loved One with a Charitable Fund," including:

Crowdsource Collections - Several different websites can be used to collect money online. Utilizing them is a good way to reach thousands of potential donors quickly.

Outsource Management - A memorial fund requires a lot of time and effort to maintain legally. Professional management companies can be used to take care of everything, but they can be expensive.

Outsource Paperwork - Other professional agencies will allow families to say how the fund’s assets should be distributed and take care of all of the required paperwork. These donor-advised funds are a good intermediate option for many families not wanting to give complete control of the fund over to a management company.

An estate planning attorney can guide you through the process that leaves your loved ones honored in a lasting way.

08/16/2016

In the next decade, a quarter of our nation’s agricultural land is expected to change hands, according to the USDA Natural Resources Conservation Service. In “Planning for Farmland,” the Black Hills Pioneer discusses the need for that land to remain productive and valuable. Estate planning, done properly and with the special challenges of farmland in mind, can achieve this. The NRCS identifies four key goals for a strong estate plan for farm owners:

Transfer ownership and management of the agricultural operation, land, and other assets to a new operator;

The American Farmland Trust (AFT), an organization operating under the NRCS, serves agricultural landowners, concerned citizens, planners, local officials, state agency staff, land trusts and policymakers. The AFT answers complex questions on all types of issues.

Talk with a qualified estate planning attorney and make sure your hard-earned investment and family legacy is properly protected.

08/15/2016

Financial planning should be a part of every couple’s wedding planning, whether they are just starting out or if they are coming to the marriage with substantial assets. When the couples are not economic equals, this becomes even more important. In “When financial planning meets wedding planning” from Reuters, experts advise couples to work with an estate planning attorney and financial advisor to objectively evaluate assets, review insurance coverage, discuss retirement goals and analyze estate plans already in place. This should take place before the wedding to prevent larger problems later on. Questions to ask:

Who is going to pay the bills?

How will you plan for big purchases?

When are you planning to retire and where?

If there are children from a previous marriage, how will inheritances be handled?

If the couple has two advisers or attorneys, things can get overly complicated, so it is best if the couple can agree to work with one advisor or attorney.

Then there is the sensitive issue of a pre-nuptial agreement, which is typically easier to do with those on their second marriage. If you are younger, childless, and in love, you may believe that it’s not necessary. Talk to your estate planning attorney about the benefits of having this, and then think about it.

Whatever the decision is on the pre-nup, make sure you talk to the estate planning attorney about updating or creating your estate plans. Couples should go to that meeting with printouts of all of their financial statements and insurance coverage.

Finally, after the wedding, update beneficiary information. This will include insurance and retirement plans. If a spouse has changed his or her name, your attorney can help you update your social security card, credit cards, and passport.

An estate planning attorney can help with these questions and issues, and working in tandem with your financial advisor, create a sound plan for your future together.

The most recent will designates a California charity as the beneficiary. However, this one isn’t considered valid because it’s a copy, which leaves the 1996 will in play. That one has the estate going to his parents, who were already deceased. As a result, the county is trying to settle an estate that is basically “up for grabs.” Several people are making claims.

Gerald Willits was a plumber and, in addition to all of the vehicles, he also owned four homes that together are worth at least $1.2 million. Willits was a pack rat who was cited for trash, overgrown trees, peeling paint, a lack of running water, and housing inoperative vehicles on his property. He was eccentric and a very private person.

The auto auction is scheduled for September 1 and is expected to net $60,000 to $150,000 from 110 “lots.” This sale includes a 1930 Ford Model A Roadster and a 1965 Volkswagen van. There will be dozens of Fords, Chevys, rusted flathead V8s, as well as an experimental aircraft.

Many people believe that the Public Administrator is trying to get the estate, but that never happens. That office is entitled to a maximum of 4% of the estate’s value under California law.

Don’t have your loved ones fighting over your massive collection of cars or other assets of your estate. Talk to an experienced estate planning attorney. He or she can help you draft a legal will and other estate planning documents to ensure that your wishes are carried out properly.

06/30/2016

When a minor child inherits money or property following the death of one or both parents, proper estate planning can make a huge difference in the child’s life. The Marietta Daily Journal’s article, “Using Trusts to Pass Inheritance to Minor Children” explains the process. A probate judge will appoint a guardian or conservator to manage the minor child’s assets. The conservator or property guardian will not be the child’s parents or legal guardian, as this would raise questions regarding a conflict of interest. Parents are urged to remember that unless good planning is done, when the child reaches 18, he or she will receive their inheritance. Few 18 year olds are capable of managing wealth of any size, and the potential for disaster – personal as well as financial – is real.

When you select a minor child as your beneficiary, consider placing those assets in a trust to keep him or her from spending foolishly. Trusts are simply a vehicle by which a person (the grantor or donor) transfers assets to a beneficiary (or beneficiaries). They receive the assets according to the trust document. A trustee manages the trust assets and enforces the terms of the trust.

Trusts also can transfer assets in installments or at a later date. For example, if an individual is too young or immature to deal with an inheritance. Trust assets can be set up to only be used for the health, education, maintenance and support of the beneficiary until a specified age so that the beneficiary can benefit for some time.

In addition, creating a trust and placing assets in it before death will let families or individuals distribute property without a lengthy probate process. Estate planning attorneys can structure a trust to fit your family situation so that your wishes for the distribution of assets will be carried out efficiently and properly.

Trusts are designed to help families address issues such as reducing estate taxes, avoiding probate court, or transferring assets. To structure a trust for your specific situation, contact an experienced estate planning attorney.

06/29/2016

When estates are subject to probate, the process of administering the estate and distributing assets takes place through the court system – when it becomes public record. In “Unpacking the Perils of Probate,” The Des Moines Register explains how to avoid probate by planning in advance to protect the privacy of your estate and your heirs.

With headlines of celebrity estates and the errors of the rich and famous, some people maintain that a will is all they need for their assets to be administered outside of probate. This is not true. A will “tells” a probate judge how you want your assets distributed through probate. To prevent your assets from going through the probate process, there are several steps you can take. Talk to a qualified estate planning attorney about them.

Designate Beneficiaries: Remember that life insurance policies and retirement accounts have beneficiary designations that direct who receives these benefits when you die. The will can’t touch them. The article explains that assets covered by a beneficiary designation don’t pass through probate. The designated beneficiary typically trumps what’s in your will. You should make sure you review these designations regularly. If there’s no beneficiary designated, that account may be subject to probate.

Set up a Trust: If you have quite a few assets that aren’t covered by beneficiary designations, you can create a living trust to avoid probate. A trust can allow for more control when your assets are distributed after you pass. This is a very good benefit for those with minor children, if you don’t want them to receive their inheritance in one lump sum. Trusts are more expensive to set up than just a will, so talk with an estate planning attorney to see if one makes sense for you.

No one wants to burden loved ones after we die. One way to be sure that your estate plan will save your heirs from delays, fees and migraines, is by working with an estate planning attorney to avoid probate.